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The Federal Reserve announced a cut to its benchmark interest rates yesterday, dropping the Fed rate by 25 basis points to a range of 4.50% to 4.75% — the second time its lowered rates since ...
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In the 4-month example, the borrower will make four equal payments of $300 in principal and 4 equal payments of $12 (1% of $1,200) in interest. The total cost of this loan is the principal plus $48.00 in interest, whilst the average amount outstanding was approximately $600.
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